Spotify price target lowered to $100 from $142 at UBS

UBS analyst Batya Levi lowered the firm’s price target on Spotify to $100 from $142 and keeps a Neutral rating on the shares. The stock performance in 2023 is expected to be driven by the company’s ability to continue to grow its subscriber base despite inflationary pressures on the consumer, and while he anticipates gross margin expansion with lower operating losses next year, the macro backdrop and the deterioration in the ad market reduce his visibility on the pace of improvement, the analyst tells investors in a research note.